Jio Financial Services and BlackRock Management have submitted papers for their proposed mutual fund joint venture to the Securities and Exchange Board of India (SEBI). According to SEBI’s website, the application was filed on October 19, 2023, and is currently under review for the regulator’s “in-principle approval” as of December 31, 2023.
BlackRock Asset Managers is the world’s largest asset manager and previously operated in India through a joint venture with the DSP Group. However, the partnership with DSP BlackRock Mutual Fund concluded in 2018. Following this, BlackRock announced its plans to re-enter India with Jio Financial as its new partner. Both companies are reportedly planning to invest $150 million each in the joint venture.
Initial reports suggested that the joint venture might acquire an existing Indian fund house to expedite its mutual fund operations instead of applying for a new license. However, the current application indicates a different approach.
Meanwhile, another application by Abira Securities, a Kolkata-based stockbroking house, is also under consideration for SEBI’s in-principle approval. This marks the second attempt by Abira Securities to secure a mutual fund license, with the first application made in 2022. On the other hand, Angel One received in-principle approval on February 8, 2023, and is awaiting the final go-ahead from SEBI.
Currently, the Indian mutual fund industry comprises around 45 players. In 2023, Bajaj Finserv Asset Management, Helios Mutual Fund, and Zerodha Fund House commenced their operations. Looking ahead, Old Bridge Capital Management and Unifi Capital Pvt are slated to launch their mutual fund operations in 2024.
The applications and developments in the mutual fund space reflect the ongoing evolution and expansion of India’s financial services sector, with new partnerships and initiatives contributing to the industry’s growth.
